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Robinhood Venture Backer NEA Reaps More Than $3 Billion Post-IPO

  • Filing shows firm invested $231 million starting in 2015
  • NEA has made 15-fold profit on its stake in online trading app
   
Photographer: Tiffany Hagler-Geard/Bloomberg

New Enterprise Associates reaped a 15-fold gain on its investment in Robinhood Markets Inc. -- a return that would have been even higher if not for an emergency funding round earlier this year.

The venture capital firm paid $231 million for its 10.3% stake in Robinhood, according to a regulatory filing. That same stake, amounting to 74.8 million shares, was worth about $3.5 billion as of the close of trading on Friday.

Robinhood has been at the center of the meme-stock frenzy that’s captivated Wall Street this year. But after wild trading sent its collateral requirements soaring, the company was forced in January to draw down its credit lines and raise $3.4 billion from backers -- including NEA -- to post more collateral with the industry’s clearinghouse.